DELIVERING THE EXTRAORDINARY

1 ANNUAL REPORT 2019

Established in 2003, Landmasters, Inc. (CLI) is a home-grown real estate company engaged in the development of residential, office, hotel, mixed-use, and township projects. Guided by our core pillars, we go beyond the usual to give you the life you deserve.

With our extraordinary hands-on service from start to turnover, table of comprehensive expertise in Visayas and Mindanao, exceptional amenities that innovate the way you live, and excellent choices that cater to any lifestyle needs.

With expansions and portfolio diversification, strategic alliances with local and international partners, enhanced brand equity through communications campaign, and 4 About the Company recognition from peers in the real estate industry. 16 The Chairman’s Message In 2019, we achieved greater heights and delivered extraordinarily – propelling us to serve you even better. 18 The Chief Operating Officer’s Message 20 The Chief Finance Officer’s Message 22 Extraordinary Milestones 32 Business Performance 94 Feature Stories 111 Our Leaders 114 The Board of Directors 116 The Executives 118 Corporate Governance 124 Financial Review 246 Stakeholder Inquiries

2 02 TABLE OF CONTENTS ABOUT THE COMPANY 03 3 To be exceptional means that the extraordinary should start from within. Anchored in our core values, we strive to fulfill our mission and vision every day to deliver the best projects and services that you deserve for you to live your best.

company

04 ABOUT THE COMPANY 5 our To be the leading customer-focused and community-centric real estate company in Visayas and Mindanao.

our Guarantee stakeholder satisfaction by bringing out the extraordinary in every company step of the real estate journey.

6 MISSION AND VISION 07 our our

advantage

Customer-First VisMin Expertise We are a close knit, family-oriented CLI takes pride in our local knowledge company that places our customers at and expertise in the VisMin region. the heart of everything we do. With that, we choose only the best strategic locations for our projects.

Hands-on Service Collaboration Experience hands-on service that truly We value teamwork and nurture delivers before, during, and after relationships with each other and property turnover. This is achieved with our partners. through our dedicated in-house sales support, customer care, monthly construction updates, and an in-house Commitment CLI Property Management (CLIPM). We are committed to deliver what we promise and to constantly improve ourselves.

Remarkable Amenities Leadership CLI promises high-quality delivery and As leaders, we take pride and responsibility provides value-added amenities that in being real estate masters in VisMin. are beyond the usual: spacious communities, chapel, pool, basketball court, sky deck, gym, meditation garden Integrity and clubhouse, and other features which We are a people of integrity. We uphold vary in every project. having strong moral principles. Unparalleled Choices CLI offers a wide range of developments from residences, offices, hotels, mixed- Agility use, and townships all over key VisMin We value agility – identifying the needs cities, in Cebu, Mandaue, Davao, of the market and acting on it quickly. Cagayan de Oro, Bacolod, Dumaguete, Iloilo, and Bohol.

08 EXTRAORDINARY ADVANTAGE 09 residential project PREMIER MASTERS CLI’s masterpieces situated in prime urban locations offer a premium lifestyle As an integrated real estate company, Cebu and world-class living — OFFICES perfect for those who want Landmasters, Inc. offers a wide array of to enjoy more of life. developments including residential units, offices, hotels, mixed-use, and townships.

This residential portfolio allows us to cater GARDEN SERIES to different lifestyles and socio-economic CLI’s best-selling series segments — from exclusive and upscale to promises green open spaces, mid-market and garden-inspired communities, great views and well-designed residences — perfect for those and even economic offerings and socialized dreaming for a home flled with housing that give more value to Filipinos. nature in a progressive urban setting. MIXED-USE

CASA MIRA CLI’s award-winning economic housing community caters to the common aspiration of every Filipino family to own a home — perfect for families dreaming to live in a beautiful community while getting the best value for their money.

HOTELS

VILLA CASITA CLI’s socialized housing project provides families with simplifed living spaces. These homes enable residents to enjoy the necessities of life while being surrounded by the beauty of nature.

RESIDENCES TOWNSHIPS

10 PROJECT CATEGORIES RESIDENTIAL SEGMENTS 11 business CLI

Leadership in VisMin’s Strategic location property development selection process

With extensive knowledge Whether for a high-end Fast-growing property and a strong relationship with condominium or an economic developer with unique the broker community, CLI has housing project, the company regional expertise become a trusted brand by its consistently seeks locations in VisMin growing roster of buyers, with high-value appreciation end-users, and partners. potential.

Diversified portfolio Experienced team and of projects organizational culture

CLI is highly engaged in the Our customer-first attitude Landbank Lite: “Acquire to development of residential, and family-oriented team Develop” Strategy office, hotel, mixed-use, and enables CLI to achieve high township projects, catered to stakeholder satisfaction and the lifestyle needs of its establish strong brand equity. various target markets.

Socially responsible development Strategic partnerships Diversified portfolio from residential Wherever the company develops, With CLI as the project subdivisions, condominiums, offices, CLI is committed to demonstrate manager and developer, our responsible planning and joint ventures are able to mixed-use, hotels, and townships development through partnerships deliver great value and with local government units, outstanding results. local institutions, and socio-civic organizations.

Strength in resource Operational excellence allocation Professionally run, CLI has a fully-integrated real estate set-up, paired with its family-owned business Throughout its growth, the company has consistently hands-on and personalized demonstrated strong approach that allow us to profitability and prudent effectively respond to the financial management. needs of our clients and industry partners.

12 BUSINESS PROFILE CLI BUSINESS MODEL 13 CLI

Expansion to key cities in VisMin Growth of economic housing brand CLI expands quality development across VisMin The Casa Mira brand is CLI’s reasonably with groundbreaking projects in Cebu, Cagayan priced housing, targeting the BCD market and de Oro, Davao, Dumaguete, Bacolod, Bohol, the young workforce. This fastest-selling and Iloilo with new expansion areas in Butuan, brand has both subdivision and condominium General Santos City, and Palawan. types of development.

Vertical integration in Capitalizing on pipeline projects property management CLI has positioned itself well for the next Cebu Landmasters Property Management, Inc. two years in with new vertical (CLIPM) was incorporated in 2017 to provide residential and mixed-use developments. CLI property management services to housing and targets to replicate this success in Bacolod, condominium projects developed by the company. Davao, Dumaguete, and Iloilo.

Building recurring Establish and leverage income development strategic partnerships With the goal of making it a self-sustaining and CLI has proven that it can secure strategic revenue-generating business unit, CLIPM is locations and penetrate new markets with envisioned to eventually offer and expand its ease through joint ventures that are executed services to outside clients. through best practices.

14 CLI KEY STRATEGIES CLI KEY STRATEGIES 15 the Chairman’s To Our Valued Shareholders, Cebu Landmasters delivered another remarkable year of growth As we continue to innovate and create world-class in fnancial performance and strategic expansion. In a short developments in our communities, Cebu Landmasters was span of two years from the time Cebu Landmasters became able to close a landmark deal in 2019 with the engagement a publicly listed company, we witnessed our consolidated of a 2,800 sqm prime lot in Cebu Business Park into a 43-year revenues double up and our total asset base grow by over lease to build an iconic building to house a six-star hotel mixed 300%. We have diversifed our product line to cater to all with premium offces and retail spaces. All these expansion market segments of the real estate spectrum, focusing in the moves will defnitely support Cebu Landmasters’ strategy to Cebu Landmasters delivered another VisMin regions where we are now present in 15 key cities. strengthen and build up our recurring businesses in the next remarkable year of growth in financial three to fve years due to the expanded Gross Leasable Area In 2019, we sustained our growth momentum with consolidated (GLA) of about 200,000 sqm which will contribute healthily to at performance and strategic expansion. revenues increasing by 26% to Php 8.51 billion with a net income least 10% of our increasing revenue base. of Php 2.44 billion, backed up by total assets worth Php 38.3 billion. In a short span of two years from the Our Philippine economy somehow slowed down to 5.9% in 2019 In 2019, we also continued forming strategic alliances with time Cebu Landmasters became a but there were other economic variables that propelled Cebu business partners to undertake joint venture projects on high Landmasters to attain its sales, income, and expansion targets. value properties. This allows Cebu Landmasters and our publicly listed company, we witnessed partners to synergize competencies and business strengths We experienced the stabilization of our infation rate at 2.5% as we add value to the communities we are enhancing due to our consolidated revenues double up from a high of 5.2% in 2018, our Gross International Reserves our projects. We continue to enjoy these partnerships with (GIR) realized an all-time high of USD 87.9 billion, and Central and our total asset base grow by over such established names in the industry such as Aboitiz Land; Bank lowered interest rates three times in 2019, resulting to the Borromeo Brothers Estate of Cebu; the Gothong, Almario, 300%. We have diversified our product a benchmark rate of a manageable 4.0% pa.. These positive and King families of the El Camino group; the King, Selma, macroeconomic numbers and developments boosted Cebu line to cater to all market segments of Kokseng, Uy, and Borja families of the Ming Mori reclamation Landmasters’ confdence to successfully launch Php 18 billion joint venture project; the King , Deen, and Kokseng families the real estate spectrum, focusing in worth of projects in 2019. of the Mivesa joint venture project; the Villa Abrille clan of Davao City led by the Yuson, Huang, and Tan families; the the VisMin regions where we are Aided with increased Overseas Foreign Workers’ (OFW) remittances reaching USD 30.1 billion and household consumption Laurel family of the LPU group for the university township in now present in 15 key cities. contributing 68.4% of Gross Domestic Product (GDP), Cebu Davao; Alfonso Tan and his family in Iloilo; the Lacson and Landmasters went on to spend close to Php 10 billion in capital Lustre families of Bacolod City; and our long-term land lessor expenditures in completing projects and acquiring 55 hectares partner, the Roman Catholic Archdiocese of Cebu. of strategic landbank being primed for future expansion. This As of this writing, we are now facing this Covid-19 global health additional land acquisition contributed to our increased landbank crisis which has affected all of us. Cebu Landmasters has area coverage, totaling now to over 125 hectares, which will be taken the necessary steps and applied full measures to ensure utilized to roll out our economic and mid-market residential brands the safety and health of our employees, workers, residents, Casa Mira and the Garden Series that are strategically positioned tenants, and even extending medical support to our neighbors in key cities in the VisMin region. With this available landbank within communities we are part of who may be affected by already programmed for development, it will effectively bring the pandemic. We remain steadfast in our commitment to all over 12,000 residential units in housing and condominium projects our stakeholders with hope and confdence that we will come into the company portfolio and will generate an estimated Php 30 out of this crisis as a stronger company that is prepared and billion worth of real estate sales within the next four years. capable to meet the challenges that lie ahead of us.

Cebu Landmasters also continue to engage in larger scale Let me thank all members of the Cebu Landmasters family, and interactive developments. These include fve mixed-use together with the Board of Directors - particularly our projects in various stages of construction and operations: independent directors, who continue to share tirelessly Base Line Center in , The Paragon Davao in Davao their hard work and dedication in making sure that we are City, Astra Centre in Mandaue City, 38 Park Avenue in Cebu moving along the right path of growth and stability in the IT Park, and Patria de Cebu in downtown Cebu City. We are pursuit of the extraordinary. also completing site development of our 22-hectare Davao Global Township, Davao City’s frst premier Central Business Yours sincerely, District, while we continue planning and securing regulatory approvals on estate development projects being concretized in Mandaue City, Tagbilaran City, Cagayan de Oro City, JOSE R. SOBERANO III Bacolod City, and Minglanilla, Cebu. Chairman & Chief Executive Offcer

16 THE CHAIRMAN’S MESSAGE 17 the COO’s

Dear CLI Stakeholders,

In 2015, your leaders at CLI set the courageous goal of This year, we recorded our highest reservation sales This was a defining year for the becoming the leading real estate developer in Visayas- accomplishment of Php 12.67 billion, 32% higher than in Mindanao by 2020. Inspired by a series of successful 2018. Our expansion plans have borne fruit, with sales company, but more than the awards projects and backed by a growing team of motivated real coming from various sites and product lines in Cebu and accolades, this was a validation of estate professionals, we set our sights on this fve-year (58%), Davao (15%), CDO (13%), Bacolod (12%), and dream to become the leading player in the region. Dumaguete (2%). We also achieved a special milestone the strength of the organization, with the opening of our very frst hotel, Citadines Cebu Fast-forward to 2019, your company did not only City, which has risen to become one of the highest- the soundness of its strategy formulation become the leading real estate player in VisMin, but rated Cebu City properties within just a few months of we were bestowed the honor as the Best Developer in and implementation, and the sheer operations. We have also continued to forge strong the by the prestigious Philippines Property partnerships, including a joint venture with AboitizLand Awards. This was, indeed, a defning year for the commitment to deliver beyond what is for a mid-market residential community in Mandaue company. But more than the awards and accolades, 2019 City and with International Builders Corporation for a expected - that is the CLI way that has was a validation of the strength of the organization, the high-rise residential project in the heart of Iloilo City. allowed us to outperform even soundness of its strategy formulation and implementation, and the sheer commitment to deliver beyond what is In 2020, the whole industry faces strong headwinds our own internal aspirations. expected - that is the CLI way that has allowed us to as the pandemic brings about a new normal. outperform even our own internal aspirations. Nevertheless, your company feels strongly that the successes that have brought us to this point have Nevertheless, your company is defnitely not resting on placed us in a healthier position to not only overcome its laurels. This has prompted your company to work even the current circumstance but also to sustain and harder, as we welcome the weight of higher expectations continue excelling. We will be more focused than ever from not only the industry but more importantly from before, as our stakeholders will be counting on us our customers. In CLI, we always say that our customer and our current and future homeowners will depend deserves only the very best. Thus, your company is on us to provide one of the most important frontlines always fndings ways to improve, adapt, and innovate. of defense – a safe and secure home. We started in We have introduced a Strategic Business Unit (SBU) 2003 as a homebuilder and our passion to build homes approach to project delivery, dividing our teams into continues up to this very day. Cebu, Visayas, and Mindanao clusters so that there is greater focus and cohesion from end to end. This On behalf of the Cebu Landmasters family, we wish will enable consistent operational excellence across you and your families the best of health and solidarity our sites and ensure that we embrace CLI’s mission of during this time. At CLI, the family is at the heart guaranteeing stakeholder satisfaction in every step of the of what we do, and we will endeavor to always be real estate journey. inspired by this sense of service to the family and community. Thank you for your continued support! As of 2019, we have over 58 developments spread across ten key cities in VisMin. In addition, your company has a heathy pipeline of over 28 projects ranging from residential to offces, mixed-use, hotels, and townships. JOSE FRANCO B. SOBERANO Executive Vice-President & Chief Operating Offcer

18 THE COO’S MESSAGE 19 the CFO’s

Dear Fellow Shareholders,

It is with great pride, and with acceptance of this immense We are also well-positioned to sustain our momentum 2019 was another year of sustained responsibility, that I write this annual message to you for the with CLI recently securing Php 8 billion in a frst time as CFO of Cebu Landmasters. syndicated loan facility that was oversubscribed growth and performance by Cebu at very competitive margins. Our new partnerships The year 2019 was another period of sustained growth with AboitizLand of the Aboitiz Equity Ventures, the Landmasters. Our consolidated and performance for Cebu Landmasters. Our consolidated International Builders Corporation group in Iloilo, revenues grew by 26% year on year (YOY) to Php 8.5 billion, revenues grew 26% YOY, to P8.5 billion, and collaborations with several global hotel brands leading to a gross proft of Php 4.2 billion and a net income will contribute to our continued growth. It bodes well after taxes of Php 2.44 billion at the consolidated level. This leading to a gross profit of that the people who know CLI best are those who are growth was achieved with a gross margin of 49% and a net P4.2 billion and a net income after committing resources to us. income margin of 29%. taxes of P2.44 billion at the Despite the challenging environment we are all facing The proft attributable to CLI shareholders comes in at now, the management of CLI will continue to deliver Php 2.01 billion, up 21% YOY, translating to earnings per share consolidated level. This growth was value to all our stakeholders for many years to come. of Php 1.21. achieved with a gross margin of 49%, We hope to keep earning your faith and rewarding your The performance was largely driven by our core business of trust in CLI. and a net income margin of 29%. residential development, which once again delivered well for

us, with impressive growth across different market segments.

Our Premier Masters, Garden Series, and Casa Mira brands BEAUREGARD GRANT L. CHENG offer distinct and well-defned value to our buyers and have Chief Finance Offcer already carved out a name in the market for its excellent value for money for aspiring homeowners.

At the same time, CLI has begun reaping the fruits of CONSOLIDATED REVENUES its commitment to building up our investment assets. In in billions Php September 2019, we opened Citadines Cebu City, our frst 2019 hotel. It is already the highest-rated hotel in Cebu City in 8.50B the short time since its opening. In the coming years, more 2018 6.77B hotel keys, offce units, and retail spaces will be delivered. These new business line will make CLI a more resilient, well- diversifed real estate developer. These will also diversify our CONSOLIDATED NET INCOME revenue base, smoothen our cash fow profle, and enable in billions Php CLI to take in a wider spectrum of investment opportunities that are presented to us. 2019 2.44B

Growth was also driven by our expansion into more areas in 2018 2.17B VisMin. The reception for CLI products in new markets has been very impressive, as shown in market leading absorption rates and sales velocity. We’re now in ten key VisMin cities PROFIT ATTRIBUTABLE TO SHAREHOLDERS in billions Php and looking to expand further. This narrative of organic

growth is evidenced in our unbooked revenues, which grew 2019 2.01B by 28% to Php 15.18 billion and was fuelled by reservations sales in 2019 amounting Php 12.68 billion. 2018 1.67B

20 THE CFO’S MESSAGE 21 For 2019, CLI’s performance can be described in one word: extraordinary. With record-breaking expansions, exciting joint ventures, well-received marketing campaign, and stellar recognitions, CLI has indeed become an undeniable force in VisMin’s real estate industry.

milestones

22 EXTRAORDINARY MILESTONES 23 EXPANSION ACROSS VISMIN

milestones

CLI expands its landbank through strategic partnerships and major acquisitions in VisMin, bringing its total to 1,245,485 sqm or a 36% growth from our 2018 figure. This will secure our rapid and sustained growth in the next few years.

JOINT VENTURES IN 2019 A key factor in this expansion is our partnership with established names and top businessmen in the industry and in their areas. Among our partners include: township development in Davao condominium

0524 PROJECT CATEGORIES EXTRAORDINARY MILESTONES 25 ACQUISITIONS IN 2019 DIVERSIFICATION Our properties will give rise to projected investment of P50 billion, with acquisitions and developments in highly marketable properties in VisMin locations: THROUGH RESORT CEBU DEVELOPMENT CLI further amplifies its portfolio as it ventures an exclusive resort of 100 all-suite rooms into resort development with its acquisition of the Abaca Boutique Resort in Mactan. The company signed a hotel management agreement with The Abaca Group, owners of the resort and six-star international hotel brand in Cebu Business Park a chain of top-end Cebu restaurants. This will ensure that Abaca’s brand of uncompromising quality and high-end, personalized service will continue in the new Abaca Resort Mactan. With a footprint of 4,328 sqm, the all-suite Abaca Resort Mactan is a luxury resort in the Punta Engano area of Mactan Island, boasting of an attractive oceanfront and highest ratings from global travel experts.

A reputable foreign architect will be tapped to design and masterplan the redevelopment of the luxury resort. Plans include expanding the current nine rooms into a 125-room all-suite luxury development, which will host Mactan’s very first Sky Villas.

Abaca Resorts Mactan closed its doors in February 2020 to give way for the development that will be completed in 2023.

Abaca Resorts Mactan closed its doors in February 2020 to give way to the 100 all-suite luxury resort development that will be completed in 2023

26 EXTRAORDINARY MILESTONES EXTRAORDINARY MILESTONES 27 LANDMARK INAUGURATION

OF FIRST HOTEL Cebu Landmasters, Inc. launches its first hotel property with Citadines Cebu City in partnership with The Ascott Limited, a leading global serviced-residence operator with more than 500 properties in more than 30 countries.

Citadines Cebu City is a 180-room serviced residence strategically located within CLI’s mixed-use lifestyle hub in midtown Cebu, the Base Line Center.

CLI has appointed multi-awarded Abaca Group of Cebu to exclusively run the food and beverage operations. The menu will draw from the Group’s extensive restaurant SUCCESSFUL LAUNCH OF experience spanning a variety of cuisines and well-loved brands. ‘LIVE EXTRAORDINARILY’ CAMPAIGN

CLI is set to grow Citadines’ hotel portfolio to Continuing our commitment towards More than that, the actor’s unrivalled 1,100 rooms by 2023. excellence, CLI proudly launched our new expertise in a career that has spanned marketing campaign. Dubbed as ‘Live three decades is reflective of CLI’s The Ascott Limited will also operate three Extraordinarily,’ the campaign exemplifies competence. From making its mark through other hotel projects for CLI: Citadines Paragon the brand’s core advantages of hands-on residential projects, CLI has now become Davao, Citadines Bacolod City, and lyf Cebu City service, value-added amenities, VisMin the leading residential developer in the in Base Line Prestige. All will open by 2023. expertise, and wide range of choices. whole VisMin region.

To personify these four pillars, CLI CLI marked its 16th anniversary in real has tapped television and film star Ian estate in 2019. Veneracion as the brand’s official ambassador. Like CLI, Veneracion is proactive and versatile in his roles, especially as a much-sought actor and a doting family man. The multi-faceted actor also has a strong affinity with VisMin. His mother is from Cebu and the actor would spend summers in the province.

28 EXTRAORDINARY MILESTONES EXTRAORDINARY MILESTONES 29 OUTSTANDING RECOGNITION

In 2019, CLI received unprecedented recognition from our peers in the real-estate industry. We are grateful for the various award- giving bodies for recognizing all our efforts, particularly for making us 2019’s Best Developer in the Philippines.

Best Developer (Philippines) – Best Developer (Philippines) – Winner Country Winner

Best High-End Condominium Development (Cebu) – Winner, 38 Park Avenue

Special Recognition in CSR – Winner

Best Affordable Condominium Development (Cebu) – Highly Commended, Casa Mira Towers Labangon Best Developer (Visayas And Mindanao) – Best Mid-End Condominium Winner Development (Davao) – Highly Commended, Mesatierra Garden Best Affordable Condo – Residences Winner, Casa Mira Towers Labangon

Personality of The Year – Winner, Jose Soberano III (CLI President and CEO)

One of the Top Ten Developers (Philippines)

30 EXTRAORDINARY MILESTONES EXTRAORDINARY MILESTONES 31